00:01
Given a fully amateurized mortgage, which of the following is true? a, a higher interest rate results in lower periodic payments.
00:09
B, a longer term results in larger periodic payments.
00:12
C, as the loan term increases, the amortization rate decreases.
00:17
D, higher interest rates result in higher amortization rates.
00:22
A higher interest rate results in higher periodic payments.
00:25
Therefore, option a is incorrect.
00:29
A longer term results in smaller periodic payments.
00:35
So that one's incorrect as well.
00:37
So higher interest rates, let's look back at a, higher interest rates are going to increase your payments because you have to pay more interest on each dollar.
00:47
If i look at option b, a longer term isn't going to result in larger periodic payments because i'm spreading that amount over a longer period of time...